Japan’s exports fell 10.3% in October from a year earlier, figures released Monday by the Ministry of Finance showed. The reading came in worse than a 9.4% drop forecast by economists polled by The Wall Street Journal.

Japanese stocks were supported Monday by a continued fall for the yen
USDJPY, -0.01%
, with the dollar trading just below the ¥111 level.

Emerging Asian currencies were broadly lower against the dollar, with outflows continuing as traders moved cash to higher-yielding U.S. assets.

Heng Koon How, a foreign currency strategist for Credit Suisse, said that after Donald Trump was elected U.S. president, pledging to implement reflationary policies, yields have surged in the U.S. and money has continuously exited emerging Asia.

“The outflows will just get bigger,” said Heng. “[U.S.] yields will keep inching higher…investors will need to recalibrate and acknowledge this shift.”

Heng added that the U.S. Dollar Index, which had stayed almost entirely within the 93-100.5 range for nearly two years, has been mostly above 101 since Friday.

China’s headwinds

The People’s Bank of China set the yuan weaker again — by 0.3% — against the U.S. dollar Monday. This was the 12th straight fixing lower.

The slow drip of yuan weakening is weighing on Hong Kong-listed China shares, said Erwin Sanft, head of China strategy for Macquarie. “The [Chinese] economy has stabilized, and we’ve moved out of deflation. So the fundamental trends are good. The main headwind is the currency,” said Sanft.

Hong Kong stocks were resilient Monday thanks to expectations that the Shenzhen-Hong Kong trading link will launch any day now, channeling more cash from China into Hong Kong.

The Shanghai market hit a fresh 10-month high Monday, buoyed by hopes for more investment by insurers, while brokerages rose on expectations of increased trading volumes with the opening of the Shenzhen-Hong Kong link.

The benchmark Shanghai Composite Index closed up 0.8%, with more than two-thirds of stocks gaining.

Korea’s Kospi closed down 0.4% amid political turmoil in South Korea. South Korean President Park Geun-hye helped a longtime friend extort money from corporations and allowed her to receive classified documents, prosecutors said Sunday. The claims are the first formal accusations of wrongdoing against the president. The scandal has triggered the nation’s largest-ever street demonstrations calling for her ouster.

In India, stocks continued their march lower Monday, as investors analyzed the impact of the cash crunch facing the economy. India’s government recently said it would replace large-denomination bills, and people are still struggling to acquire enough of the new large bills to carry out daily transactions. This has led to disruptions in economic activity. The India S&P BSE Sensex was down 1.5%.

Looking ahead, data coming out of the U.S. this week include durable goods and home sales.

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